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Trump Threatens To Take US Out Of The World Trade Organization


08/31/2018


Trump Threatens To Take US Out Of The World Trade Organization
The United States President Donald Trump has warned that if the World Trade Organization (WTO) if the global; organization doesn't "shape up", he would pull the US out of the organizaiton. The US president said this during an interview with the news outlet  Bloomberg.
 
The way the international trading organization treated the United States was again severely criticized by Trump in the interview with Bloomberg.
 
He told Bloomberg, "If they don't shape up, I would withdraw from the WTO."
 
These comments form the US president followed some earlier reports where it was claimed that Trump had told his aids in the White House that he was keen on withdrawing the US form the WTO.
 
However, the reports have also suggested that the top Trump administration officials at the White House are not as eager as the president to take the country out of the purview of the global trade regulator. For example, Commerce Secretary Wilbur Ross had said in a July interview to the new broadcaster CNBC this year that any talks or discussions of pulling the US out of the WTO was "a little premature."
 
"We've made no secret of our view that there are some reforms needed at the WTO," Ross said on "Squawk Box."
 
He further explained that the WTO could better "update [or] synchronize its activities."
 
The remarks from Trump assume importance because in recent month, he has virtually escalated the trade spats with a number of countries which includes some of the traditional trading partners of the US as well. The protectionist trade policies and measures in terms of import tariffs taken by Trump have created a gloom over global trade and has pressurized those stocks that are trade-sensitive.
 
A for example, earlier this week, a four day winning streak in US stocks came to an abrupt end after there was a news report in in Bloomberg that Trump is in favor of going ahead with the proposed import tariffs on additional Chinese goods worth $200 billion.

Irrespective of what Trump feels and says about the WTO and its treatment to the US, the members of his administration has now approached the WTO to seek assistance in dealing with retaliatory tariffs on US goods that have been imposed by China, the European Union, Canada, Mexico and Turkey.
 
In July, the U.S. filed five dispute actions with the WTO alleging that the retaliatory tariffs against the U.S. were illegal under the trade organization's rules.
 
(Source:www.cnbc.com)